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tonybarnaby

macrumors 68020
Original poster
Dec 3, 2017
2,385
1,741
I think people find it easier to justify a purchase with a payment plan, or if the monthly payment is “not much more” than what they are currently paying.

For example....say you’re paying $35/month for a phone. You’re pretty happy with it even when the next model comes out. But the next model is “only” $5 more a month, so you upgrade. Forgetting that had you held onto your current phone, it would be paid off and you’d have NO payment.

The phone payment has become a permanent fixture in some people’s budgets. I don’t really care how someone chooses to spend their money, and I know plenty of people will upgrade every 1-2 years anyway whether they pay up front or not. But holding onto a perfectly capable phone for longer than 2 years would be much more common without payment plans.
I paid $800 for my 8 plus. If I get 3 years out of it, that will mean it costs me less than $1 a day. Doing the upgrade program would be around $500 per year(with taxes) and no phone to sell when you upgrade.

$799 + taxes = $850. Sell for $300 in 3yr
- $550 over 3 years


IUP every year = ~$500 a year x 3 years = $1500. No phone to sell to cut the costs

So if I keep my 8 plus for 3 years, I’ll effectively save $1k. I can then use that $1k to pay cash for my iPhone purchase in 2020.
 
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appleguy123

macrumors 604
Apr 1, 2009
6,863
2,541
15 minutes in the future
I paid $800 for my 8 plus. If I get 3 years out of it, that will mean it costs me less than $1 a day. Doing the upgrade program would be around $500 per year(with taxes) and no phone to sell when you upgrade.

$799 + taxes = $850. Sell for $300 in 3yr
- $550 over 3 years


IUP every year = ~$500 a year x 3 years = $1500. No phone to sell to cut the costs

So if I keep my 8 plus for 3 years, I’ll effectively save $1k. I can then use that $1k to pay cash for my iPhone purchase in 2020.

That’s just a totally wrong way of looking at it. At the end of 2 years on iUP, you’d own the phone too for the cost of the phone and AppleCare. The only benefit (unless you consider iUP some kind of trap for people who can’t actually afford the monthly installments consistently) to buying the phone outright is that you don’t have to buy AppleCare. You could still keep an iPhone bought using iUP for 3 years and sell it the same way you could if you bought it and wanted to sell three years later. You own the phone after 2 years.
 
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Cleindian44

macrumors newbie
Apr 14, 2018
1
2
My first post!

I'm not going to tell people what to do with their money. I would love to have an iPhone X. What I'm not in love with is adding $30-$40 more to my already inflated monthly bill. When I do buy a new phone, I am seriously leaning towards paying for it at once.
 

kazmac

macrumors G4
Mar 24, 2010
10,086
8,627
Any place but here or there....
Not going to answer for anyone but myself. If folks want to finance for two years, that is their business. It's not unlike the 2 year subsidized contracts. Me, I'd rather pay up front. I learned something very important about buying Apple after last year: buy what I need and use, not what I think I want. So cheaper iPhone -and if I replace it- an iPad Pro on sale going forward, while the money I save on the upgrade will go toward my next Mac. Now I've realized my iPhone needs are very modest, I'll buy according to what I need and the price I am willing to pay. And, yes, I will continue to pay up front. :)
 

smallcoffee

macrumors 68000
Oct 15, 2014
1,667
2,208
North America
If buying something outright means using your entire savings that's obviously not responsible either. You know, simply living without the latest iPhone is an option too...

There's not really a one size fits all financial plan, so I'm not saying never buy something on installments or take out a loan. But a lot of people don't really think about how it all adds up and they end in a bad situation.

I agree, there isn't a one-size-fits-all strategy, but almost universally it's better to buy and pay on installments than it is to pay cash up front. Even an awful CD will return something more than 0%.
[doublepost=1523756709][/doublepost]
If you really want to uncover the reason for the high cost of iPhones, you need look no further than the folks who repeatedly return multiple perfectly good phones over their unreasonable and obsessive demands for a pristine, perfect phone and those who purposely damage their phones and batteries to scam a system designed to protect consumers.

We have a problem with people buying **** just to buy it. But that cost, as high as it is, is also subsidized by what's close enough to slave labor. I'd gladly pay 2-3x as much for a tech product if I knew the workers were getting a good wage and it was here in the United States or Europe/Japan/we. Even if they were robot workers. ;)
 

Mrbobb

macrumors 603
Aug 27, 2012
5,009
209
I personally think that being able to finance a phone over 24 months leads people to over spend

That's so old news. That's precisely the vendors' intention. That's what credit cards do, BUY NOW! and you only have to pay minimum every month! But no-interest financing can be a good tool if one uses it properly.
 

comper

macrumors regular
Feb 27, 2011
167
87
Michigan
No.

If you’re genuinely worried about how it will affect people’s finances then you should start with things much more precarious than a fixed-rate $30-50/mo payment at 0% interest.
 
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Dodgeman

macrumors 65816
Nov 30, 2016
1,355
199
We can start with the manufacture charging a price that is out of line for a cell phone, but hey consumers are paying for it so.
 

bruinsrme

macrumors 604
Oct 26, 2008
7,174
3,036
Why are you in here if not to answer the OP’s question?
Maybe the OP is correct.
Then again should people thought as fat be barred from buying certain foods?

Credit checks are used, in most financing cases.
I pay £13 a month for my phone contract. I have always paid cash for an unlocked iPhone on launch day. Then I sell it when I buy the next one, which pays for a chunk of it.

If people want to finance a phone that's their business.

However if you can't afford the latest and greatest, do you really need it?

Mostly though I work with people who moan they can't afford a deposit for a flat or house.
But they lease a car, lease an iPhone and spend a good chunk each week on coffee at Starbucks etc.

Me? I made buying a house my priority because I need a house. I don't need the latest and greatest gadgets.
Now I can afford them, I buy what I want.
But there is a big difference between need and want. Most people don't understand that!
[doublepost=1523746600][/doublepost]
Like I returned a white for a black one? Yes annoys me to.

Cmon we’ve all read the posts Where some forum goers returned multiple phones for the slightlest (more like perceived defect).
How in the world can someone get 4+ defective phones?

I do the iPhone upgrade program.
Very content paying a little extra for the convenience.

It has nothing to do with not having the money. It has everything to do with 0% interest, and miles.
Plus I don’t have to worry about selling it.

Some finance big ticket items like TVs.
Why dip into savings and pay in full instead of simply taking that money from the disposal income.


The price is $1000 or around $50 a month.
Why deny anyone the opportunity to experience a phone because they can pay for it today but can pay a portion of it every month?
 

saltd

macrumors 6502a
Aug 1, 2010
760
371
The fact that I can get a zero interest loan on a $1k or more device is awesome...and quite frankly-amazing.

For better or worse, these devices are totally integrated into every day of our lives. A thousand bucks spread over 30 months is really insignificant for the utility of the product.

My beef is with the jacked up price of data plans, but that’s a different issue altogether.
 

Septembersrain

Cancelled
Dec 14, 2013
4,347
5,451
I don't mind, I do wish they had different options though. Like say 6 month, 12 month, or 18 month.

Sure I can pay mine off faster but I have to do so intentionally. It would be nice to have it as an autopay.

People will spend what they will. Most want to live the best they can. Sure, in some cases that is living beyond their means. However, that is not for anyone else to judge. It's going to happen regardless.
 

Reno Raines

macrumors 65816
Jul 19, 2015
1,473
776
I prefer to pay full price for my phone as I just like the idea that I own it. My wife likes the financing option as since it is zero interest she feels like it works best for her. I think both options are valid and the more choice for the consumer the better.
 

44267547

Cancelled
Jul 12, 2016
37,642
42,491
Interesting to see the different points in this thread about how others Choose to either pay the device off over the course of time or own the smart phone out right. Regardless, it goes to show you that everybody will have a different method of how they choose to pay for the phone, which there really is no wrong answer depending as long as the consumer is comfortable with the payments or spending the full retail price for the phone.
 
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Apple fanboy

macrumors Ivy Bridge
Feb 21, 2012
55,159
52,777
Behind the Lens, UK
Maybe the OP is correct.
Then again should people thought as fat be barred from buying certain foods?

Credit checks are used, in most financing cases.


Cmon we’ve all read the posts Where some forum goers returned multiple phones for the slightlest (more like perceived defect).
How in the world can someone get 4+ defective phones?

I do the iPhone upgrade program.
Very content paying a little extra for the convenience.

It has nothing to do with not having the money. It has everything to do with 0% interest, and miles.
Plus I don’t have to worry about selling it.

Some finance big ticket items like TVs.
Why dip into savings and pay in full instead of simply taking that money from the disposal income.


The price is $1000 or around $50 a month.
Why deny anyone the opportunity to experience a phone because they can pay for it today but can pay a portion of it every month?
I'm not a fan of finance. Even at 0% interest.
Not any good if you lose your job etc.
The last loan I had was a mortgage. I paid that off in about 8 years rather than 25.
Then when I was made redundant 10 years ago I had no financial worries of how I'd keep up the repayments on my house/car/phone.

Experiencing a phone is not the be all and end all. It's a want not a need.

As for people returning multiple devices well it happens. But they are pushing up the price for the rest of us! Another of my pet hates.
 

The-Real-Deal82

macrumors P6
Jan 17, 2013
16,325
24,038
Wales, United Kingdom
If I didn’t have 24 month contracts I likely wouldn’t buy more expensive smartphones. I’m not one of these people that doesn’t work out the total cost before committing however.

I like spreading the cost as it’s more affordable than buying outright and dealing with the outlay cost initially. I think most people still finance phones this way and without 24 month contracts the industry would be in serious trouble.

The iPhone X even on contract is still hideously expensive where I live and nearly double the monthly price of an average iPhone contract. That’s lost a lot of people’s interest here and given a boom to older handsets and the iPhone 8.

PS: it’s also worth mentioning that having a phone contract is very good for your credit rating if you can afford it.
 
Last edited:

Apple fanboy

macrumors Ivy Bridge
Feb 21, 2012
55,159
52,777
Behind the Lens, UK
If I didn’t have 24 month contracts I likely wouldn’t buy more expensive smartphones. I’m not one of these people that doesn’t work out the total cost before committing however.

I like spreading the cost as it’s more affordable than buying outright and dealing with the outlay cost initially. I think most people still finance phones this way and without 24 month contracts the industry would be in serious trouble.

The iPhone X even on contract is still hideously expensive where I live and nearly double the monthly price of an average iPhone contract. That’s lost a lot of people’s interest here and given a boom to older handsets and the iPhone 8.

PS: it’s also worth mentioning that having a phone contract is very good for your credit rating if you can afford it.
I always work out the cost. In a spreadsheet.

And who cares about credit ratings if you never plan to borrow money in your life again?
 

The-Real-Deal82

macrumors P6
Jan 17, 2013
16,325
24,038
Wales, United Kingdom
I always work out the cost. In a spreadsheet.

And who cares about credit ratings if you never plan to borrow money in your life again?
If you don’t plan on borrowing money in your life then credit ratings won’t matter. It’s certainly helped me getting the last 3 mortgages I’ve had and car loans.

Everybody is different and there is no correct answer to how anybody chooses to finance their phone.
 

Apple fanboy

macrumors Ivy Bridge
Feb 21, 2012
55,159
52,777
Behind the Lens, UK
If you don’t plan on borrowing money in your life then credit ratings won’t matter. It’s certainly helped me getting the last 3 mortgages I’ve had and car loans.

Everybody is different and there is no correct answer to how anybody chooses to finance their phone.
This is true. Like I said it's the lower paid people I work with who moan they are always skint that bother me. They finance their phone, car and go out a lot then say they can't afford to buy a place and the government should do more to help.
I just sit there and think well how about saving hard like I did?
They have no idea!
 

The-Real-Deal82

macrumors P6
Jan 17, 2013
16,325
24,038
Wales, United Kingdom
This is true. Like I said it's the lower paid people I work with who moan they are always skint that bother me. They finance their phone, car and go out a lot then say they can't afford to buy a place and the government should do more to help.
I just sit there and think well how about saving hard like I did?
They have no idea!
I used to work with people like that too, the type of people that think iPhones and Sky TV are necessities. My wife and I both have pretty good jobs and are comfortable but still use sensible finance for certain purchases. Having been made redundant a couple of times I have employment insurance just in case. We are also in a position where one of our wages will cover all outgoings just about and never commit to anything that’s out of reach financially.
 

Apple fanboy

macrumors Ivy Bridge
Feb 21, 2012
55,159
52,777
Behind the Lens, UK
I used to work with people like that too, the type of people that think iPhones and Sky TV are necessities. My wife and I both have pretty good jobs and are comfortable but still use sensible finance for certain purchases. Having been made redundant a couple of times I have employment insurance just in case. We are also in a position where one of our wages will cover all outgoings just about and never commit to anything that’s out of reach financially.
Sadly many don't. Then when their job goes south, they are left with a bunch of bills they can't pay.
I don't have a problem driving round in a car that isn't the newest in the parking lot. I'm happy knowing there isn't a car in the lot I couldn't buy cash tomorrow from my savings if I wanted.

But everyone is different. Some people believe they will never lose a job or that mum or dad will bail them out.
 

bruinsrme

macrumors 604
Oct 26, 2008
7,174
3,036
I'm not a fan of finance. Even at 0% interest.
Not any good if you lose your job etc.
The last loan I had was a mortgage. I paid that off in about 8 years rather than 25.
Then when I was made redundant 10 years ago I had no financial worries of how I'd keep up the repayments on my house/car/phone.

Experiencing a phone is not the be all and end all. It's a want not a need.

As for people returning multiple devices well it happens. But they are pushing up the price for the rest of us! Another of my pet hates.

Any phone for that matter is a want.

I happen to enjoy electronic gadgets. I used to enjoy fine bottle of wines.

Spending $150 on a bottle of wine was surely a want but also an experience.

Life experiences come in many different forms.

Went out to dinner the other night, $475 per couple. Excellent experience, wouldn’t hesitate doing it again.

As far as the phone financing goes, that is up to you and I along with others.

People abuse alcohol, people will abuse credit.

It seems to me we hear about the “Apple tax” quite a bit. This leads me to believe many feel Apple prices their products higher than others. Yet people keep buying.

Barclays pays me money to use their 0% financing.
 

MacDawg

Moderator emeritus
Mar 20, 2004
19,823
4,503
"Between the Hedges"
Saying a phone is a want and not a need is a little misleading IMO
Yes, for some it may not be absolutely necessary, at least not like air, water, sleep, etc.
But for others is it essential for their job

I know in my job, it is essential I have a phone that is capable of calls, texts and email
But it also needs the capability for VPN, remote desktop client and a screen big enough to work remotely in a crisis if needed

No, it doesn't have to be a X, it could be a 7 Plus like I had previously
But if I had no phone, I would have no job either, at least not the job I have now
 

Apple fanboy

macrumors Ivy Bridge
Feb 21, 2012
55,159
52,777
Behind the Lens, UK
Saying a phone is a want and not a need is a little misleading IMO
Yes, for some it may not be absolutely necessary, at least not like air, water, sleep, etc.
But for others is it essential for their job

I know in my job, it is essential I have a phone that is capable of calls, texts and email
But it also needs the capability for VPN, remote desktop client and a screen big enough to work remotely in a crisis if needed

No, it doesn't have to be a X, it could be a 7 Plus like I had previously
But if I had no phone, I would have no job either, at least not the job I have now
I'm not saying people have to live in the dark ages, but they don't have to have the latest iPhone. As you say I can do all that on my 7+. I suspect I could still do on my iPhone 6+.
 

nviz22

Cancelled
Jun 24, 2013
5,277
3,071
Depends on the person. For me, I don't want an additional credit check, new debt, and to have less flexibility over switching carriers or having to get some sort of insurance plan included.

I like the SIM free models you get unlocked and lay it all upfront.
 
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MacDawg

Moderator emeritus
Mar 20, 2004
19,823
4,503
"Between the Hedges"
Yep, it does depend on the person
I got my first iPhone 3GS on AT&T and I have had AT&T ever since
I've never once considered changing carriers and have no need for an unlock or insurance plan
I have never dropped or damaged a phone, but I do have Apple Care, only because it is a part of the Apple upgrade plan
 
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